ATLANTA (Bloomberg) - Accenture, the world's second-biggest consulting firm, said its latest quarterly profit fell less than analysts predicted as it won technology-service contracts. The shares rose after its sales forecast topped estimates.

Net income dropped 8.6 percent to $316.8 million, or 50 cents a share, from $346.4m, or 56 cents, a year earlier, Bermuda-based Accenture said in a statement. Sales, before reimbursements from clients, rose 29 percent to $5.11 billion in the quarter ended August 31.

CEO William Green is spending more than $250m to expand technology and advisory services over the next three years. The company also plans to double its management consultants as demand surges in Europe and Asia. Accenture had 170,000 workers in 49 countries by the end of last month, up from 140,000 a year earlier.

"Consulting came in ahead of our expectations," said JP Morgan Securities analyst Tien-Tsin Huang in New York. "The demand environment for technology spending looks very strong."

Analysts had estimated profit of 48 cents a share and revenue of $4.94bn, according to a Bloomberg survey. Excluding a tax benefit and other gains, earnings a year earlier were 39 cents.

Accenture shares rose 67 cents, or 1.8 percent, to $38.69 in extended trading following the report. They had climbed 21 cents to $38.02 in New York Stock Exchange composite trading. The stock has gained three percent this year.

The company trails International Business Machines in worldwide consulting revenue.

Accenture said that sales in the next fiscal year will increase between nine percent and 12 percent, equating to as much as $24bn. The company expects profit to rise to between $2.21 and $2.26 a share. Analysts had estimated annual sales of $21.5bn and earnings of $2.24 a share, according to the Bloomberg survey.

Sales in the current quarter will rise to between $5.4bn and $5.6bn, the company said. Analysts in the survey had estimated an average of $5.28bn.

The company also raised its annual cash dividend 20 percent to 42 cents a share for investors of record on October 12.

Defaults in sub-prime mortgages, which have increased corporate borrowing costs, have not affected sales so far, Mr. Green said on Monday.

"It's an isolated phenomenon in a certain sector," Green said in an interview. "If you look at the world's big 2,000 companies, they're continuing to invest in their businesses to compete."

Accenture booked $3.1bn in consulting agreements last quarter, representing 63 percent of the company's total new business.

"Consulting was very important," said George Price, an analyst at Stifel Nicolaus & Co. in Baltimore. "The bookings came in ahead of my expectations, and that should help maintain momentum for the next few quarters."

•Accenture has also agreed to buy closely held HB Maynard and Co. Terms of the transaction were not disclosed, the companies said in a Business Wire statement.